How to Fund a Lawsuit
Litigation finance has certain features that each plaintiff should be aware of before they set out to get funding for their lawsuit. There are many who are tempted to take up the financing without understanding its implications. IT is important to understand how to deal with these companies.
Litigation finance is the amount of money made available to you to help you with the requirements of your lawsuit, to see it to its end. You are expected to pay it back when your case is over, and you have gotten the settlement amount. IT is not the same as a loan. This money is not given to you personally, but directly to your case, where they see a high chance of you winning. This means that you are not obliged to reveal your credit history or whether or not you are bankrupt.
There shall be an interest on this type of loan. You will notice differences in how much each company charges. Such a cash advance is a risky venture, since the case, though strong, can go either way. They thus have no control over what happens to their investment. Cases that may have seemed destined for certain outcomes can quickly turn direction at the last minute. This explains why they would charge such high interests. This is done to recover their losses from all cases that turned out not as expected.
They may also lay on other charges on you, apart from the interest rates. These vary depending on the company you happen to have approached. They will include the details of those charges on the contract they bring to your lawyer to sign, and it shall be kept until your case is over. They may charge you, among other items origination fees, application fees, a documentation fee, closing costs, and a premature payoff penalty. Their operations are almost similar to traditional lenders in this regard.
This is also not an advance on your settlement amount. This is not the entire amount of what you expect at the end of the case. It is therefore important not to treat it as such. These two amounts in question are hardly ever the same. Their payment will be calculated as from when you borrowed it to when your case left you with the settlement amounts. It is advisable for you to seek other sources of funds before delving into this option.
You need to know all you can about this service before seeking it. There may get to a point where you have no choice, meaning this is the best option for you only if you understand it. You cannot afford to take it otherwise.